What does the escalation of commitment refer to in decision-making?

The escalation of commitment is a psychological phenomenon where individuals or groups continue to invest time, resources, or effort into a decision despite evidence showing that it may be flawed or incorrect. This behavior often stems from a desire to justify prior investments or a reluctance to acknowledge failure. When decision-makers become increasingly committed to a course of action, they may ignore new information or alternative options that suggest a change would be more beneficial.

In the context of decision-making, understanding escalation of commitment is critical because it highlights the risks involved in allowing previous choices to unduly influence ongoing decisions. Recognizing this tendency can lead to more rational problem-solving and better outcomes, as it encourages individuals to assess decisions based on current evidence rather than past commitments.